Report Title:

Credit Cards; Minors

Description:

Prohibits credit card issuers from soliciting minors, requires existing disclosure requirements to be in bold and conspicuous print, and adds escalating rate penalties as a required disclosure.

THE SENATE

S.B. NO.

2126

TWENTY-SECOND LEGISLATURE, 2004

 

STATE OF HAWAII

 


 

A BILL FOR AN ACT

 

relating to interest and usury.

 

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

SECTION 1. Section 478-11.5, Hawaii Revised Statutes, is amended to read as follows:

"478-11.5 Credit cards. (a) With regard to every credit card issuer wherever located and a customer who is a resident of this State and who is given the opportunity to enter into a credit card plan, every solicitation and application for the credit card plan shall set forth in bold print and in a type face larger than the rest of the text of the solicitation and application all of the following:

(1) Annual percentage rate, or if the rate may vary, a statement that it may do so and the circumstances under which it may increase and the effects of the increase[;] especially if the rate is subject to escalation as a penalty for late payments or nonpayments of charges;

(2) The date or occasion upon which the finance charge begins to accrue;

(3) Whether any annual fee is charged and the amount of the fee;

(4) Any minimum, fixed, transaction, activity or similar charge that could be imposed; and

(5) That charges incurred by the use of a charge card are due and payable upon receipt of a periodic statement of charges if applicable. For purposes of this paragraph, the term "charge card" means any card, plate or other device pursuant to which the charge card issuer extends credit which is not subject to a finance charge and where the charge cardholder cannot automatically access credit that is repayable in installments.

(b) Under no circumstance shall a credit card issuer wherever located solicit or accept an application for a credit card plan from a resident of this State who is under eighteen years of age."

SECTION 2. Statutory material to be repealed is bracketed and stricken. New statutory material is underscored.

SECTION 3. This Act shall take effect on July 1, 2004.

INTRODUCED BY:

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